Note : This document has been translated from the Japanese original for reference purposes only.
In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.
Financial Results for FY2026 2Q
November 7, 2025 Hokkaido Electric Power Co., Inc.
Table of Contents
Financial Results and Forecasts
Management Approach
Consolidated－Business Results/Financial Status … 3
Consolidated－Statement of Operations … 4
Efforts towards restarting the Tomari NPS … 28 Restarting Schedule … 29
Outline of Consolidated Financial Results for FY2026
2Q
Consolidated Financial Results for FY2026 2Q
-YoY changes in ordinary income
Forecasts of Consolidated Financial Performance for FY2026(Ending March 2026)
Summary of Forecasts of Consolidated Financial Performance in FY2026
Forecasts of Consolidated Financial Performance for FY2026 (Ending March 2026) －YoY changes in ordinary income
FY2026 Interim Dividend / Year-ending Dividend
Forecasts
… 5
… 6
… 7
… 8
… 9
… 10
Progress of Work on Safety Measures … 30
Estimate of Rate Reductions … 31
Progress of Major Management Targets … 34
Reference Materials
HEPCO Group Management Vision 2035
Capital Investment and Cash Flow
Actual Demand for the Hokkaido Area
Demand in the Hokkaido area (based on the forecast by the OCCTO)
Our share in the Hokkaido region
Plan to Develop Key Power Sources Moving Forward (HEPCO)
Successful Bid in Auction for Long-term Decarbonized Power Source
Financial Results Supplementary Materials … 11
Topics for Period After FY2026 1Q Results Announcement
Issuance of the integrated report, HEPCO Group Report 2025
Financial Results and Forecasts
Consolidated－Business Results/Financial Status
FY2026 2Q (A) | FY2025 2Q (B) | Change (A)-(B) | Comparison (A)/(B) % | |
Operating Revenue | 411.9 | 416.7 | (4.7) | (1.1) |
Operating Profit | 67.9 | 56.1 | 11.7 | 21.0 |
Ordinary Profit | 61.9 | 50.7 | 11.1 | 22.0 |
Profit attributable to owners of parent | 44.8 | 50.6 | （5.8） | （11.5） |
Business results
Basic net income per share [Yen] | 214.89 | 243.41 | (28.52) |
Financial status
（Billion yen）
（Billion yen）
As of September 30, 2025 (A) | As of March 31, 2025 (B) | Change (A)-(B) | |
Assets | 2,380.0 | 2,244.0 | 136.0 |
Net Assets | 458.1 | 407.3 | 50.8 |
Shareholders' Equity Ratio | 18.6% | 17.5% | 1.1% |
Consolidated－Statement of Operations
（ Billion yen ）
FY2026 2Q (A) | FY2025 2Q (B) | Change (A)-(B) | Comparison (A)/(B) % | |||
Ordinary Revenue | Operating Revenues | 411.9 | 416.7 | (4.7) | (1.1) | |
Electricity utility operating revenue | 389.0 | 395.3 | (6.3) | (1.6) | ||
Other business operating revenue | 22.9 | 21.3 | 1.5 | 7.4 | ||
Non-operating Income | 1.9 | 1.5 | 0.3 | 22.7 | ||
Subtotal | 413.8 | 418.2 | (4.4) | (1.1) | ||
Ordinary Expenses | Operating Expenses | 343.9 | 360.5 | (16.5) | (4.6) | |
Electricity utility operating expenses | 324.9 | 342.7 | (17.7) | (5.2) | ||
Other business operating expenses | 19.0 | 17.7 | 1.2 | 6.9 | ||
Non-operating Expenses | 7.9 | 6.9 | 1.0 | 14.5 | ||
Subtotal | 351.9 | 367.4 | (15.5) | (4.2) | ||
[Operating Profit] Ordinary Profit | [67.9] 61.9 | [56.1] 50.7 | [11.7] 11.1 | [21.0] 22.0 | ||
Provision or reversal of reserve for fluctuation in water levels | 0.4 | (0.7) | 1.1 | - | ||
Extraordinary income | 1.2 | 19.0 | (17.8) | (93.7) | ||
Profit before income taxes | 62.6 | 70.5 | (7.8) | (11.1) | ||
Income taxes | 17.6 | 19.7 | (2.0) | (10.5) | ||
Profit | 45.0 | 50.7 | (5.7) | (11.3) | ||
Profit attributable to non-controlling interests | 0.1 | 0.0 | 0.0 | 96.8 | ||
Profit attributable to owners of parent | 44.8 | 50.6 | (5.8) | (11.5) | ||
Comprehensive Income | 53.7 | 51.5 | 2.1 | 4.1 |
(Appendix）
Outline of Consolidated Financial Results for FY2026 2Q
Operating revenue (Decrease) | Operating revenue decreased by 4.7 billion yen year-on-year to 411.9 billion yen mainly due to a decrease in the fuel cost adjustments associated with the decline in fuel prices and other factors. |
Ordinary profit (Increased) | Ordinary income rose by 11.1 billion yen year-on-year, reaching a total of 61.9 billion yen. This increase was primarily attributable to the impact of time difference gains under the fuel cost adjustment system, which resulted mainly from a decline in fuel prices, as well as lower fuel costs due to an increase in hydroelectric power generation. |
Profit attributable to owners of parent (Decrease) | Profit attributable to owners of parent was 44.8 billion yen, a decrease of 5.8 billion yen from the same period of the previous fiscal year, reflecting the decrease in gains on the nuclear fuel sale posted as extraordinary income, despite an increase in ordinary income. |
Consolidated Financial Results for FY2026 2Q
－Year-on-year changes in ordinary income
Impact by the amount of hydraulic power generation from the previous year
Other
(Unit: 100 million yen)
Impact of a shift in posting of the fuel cost adjustment scheme
-35 ＋54 ＋92 619 507Increased labor costs, inflation, and interest rate hikes, etc.
FY2025 2Q
(Results)
FY2026 2Q
(Results)
Forecasts of Consolidated Financial Performance for FY2026
(Ending March 2026)
Factoring in recent trends, we revised the FY2026 consolidated earnings forecast released on July 31,2025.
(Unit: Billion yen, billion kWh)
FY2026 earnings forecast | YoY change for new forecast | |||
New forecast （Ａ） | July forecast （Ｂ） | Change (Ａ)－(Ｂ) | ||
Operating Revenue | Approximately 868.0 | Approximately 863.0 | Approximately 5.0 | Approximately (34.0) |
Operating profit | Approximately 57.0 | Approximately 54.0 | Approximately 3.0 | Approximately (18.0) |
Ordinary profit | Approximately 43.0 | Approximately 40.0 | Approximately 3.0 | Approximately (21.0) |
Profit attributable to owners of parent | Approximately 28.0 | Approximately 26.0 | Approximately 2.0 | Approximately (36.0) |
Year-on-year change/ Retail electricity sales and electricity sales to other utilities* | Approximately 2.5％ Approximately 34.4 | Approximately 2.3％ Approximately 34.3 | Approximately 0.1 | Approximately 0.8 | |
Year-on-year change Retail electricity sales* | Approximately (0.4％) Approximately 22.7 | Approximately (0.4％) Approximately 22.7 | Approximately the same | Approximately (0.1) | |
* Retail electricity sales and electricity sales to other utilities comprise of the combined sales of HEPCO and Hokkaido Electric Power Network.
Key Factors
Foreign exchange rate (JPY per USD) | Approximately 145 | Approximately 145 | Approximately the same | Approximately (8) |
CIF crude oil price (USD per barrel) | Approximately 75.0 | Approximately 75.0 | Approximately the same | Approximately (7.0) |
Note: We assume a foreign exchange rate of about 145 yen per dollar and the CIF crude oil price of about 75 dollar per barrel for October 2025 and thereafter.
Summary of Forecasts of Consolidated Financial Performance in FY2026
Electricity Sales | Retail electricity sales are trending roughly in line with our forecast. Electricity sales to other utilities are expected to increase mainly due to an increase in direct wholesales. Accordingly, the total for electricity sales is forecast to be around 34.4 billion kWh, an increase of 100 million kWh in contrast with the forecast announced in July 2025. |
Operating revenue | Operating revenue is expected to be approximately 868.0 billion yen, an increase of 5.0 billion yen compared to the July announcement, due to factors such as the impact of the revision of the wheeling service tariff in the Hokkaido Electric Power Network. |
Ordinary Income | Ordinary income is expected to be approximately 43.0 billion yen, an increase of 3.0 billion yen compared to the July announcement, due to factors such as the impact of the revision of the wheeling service tariff in the Hokkaido Electric Power Network. |
Profit attributable to owners of parent | We anticipate profit attributable to owners of parent of around 28.0 billion yen, an increase of 2.0 billion yen versus the outlook we announced in July 2025, mainly due to an increase in ordinary income. |
＜Factors behind the change in ordinary income (from the July forecast)＞
(Unit: approx. 100 million yen)
wheeling charges
fuel cost adjustment scheme
-10Other
-10 +50 430 400Review of Impact of a shift in posting of the
Ordinary income (Previous forecast)
Ordinary income
(New forecast) 8
Review of wheeling charges
Impact of a shift in posting of the fuel cost adjustment scheme
+40Initiatives for Restart of Tomari Nuclear Power Station
-100(Unit: 100 million yen, approx. 100 million yen)
Forecasts of Consolidated Financial Performance for FY2026
(Ending March 2026) －YoY changes in ordinary income
Increased labor
+50costs, inflation, and interest rate hikes
640 -120Expenses related to the promotion of human capital management
-30Other
-50 430FY2025
(Results)
FY2026
(Forecasts)
9